U.S. Companies, Legislators Pave Way for Small Modular Reactors

Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. companies and lawmakers are attempting to ride a wave of increased interest in nuclear power, particularly in the form of small modular reactors, or SMRs, which can generate a few hundred megawatts with a significantly smaller footprint and much lower construction costs than conventional reactors.

There are obvious issues with SMRs, perhaps the most important being that they have been deployed at only two sites in the whole world, in Russia and China. The International Atomic Energy Agency (IAEA) reports that SMRs are under construction or licensing in Argentina, Canada and South Korea. To date, only one SMR has been approved by the U.S. Nuclear Regulatory Commission (NRC), NuScale's (Corvallis, Oregon) SMR, which originally was planned to be deployed in Idaho in conjunction with Utah Associated Municipal Power Systems (UAMPS) (Salt Lake City, Utah). However, after the project, which was aiming at producing 720 MW from 12 60-MW reactors, was delayed by several years and its price tag more than doubled from $4.2 billion to $9.3 billion, UAMPS pulled out of the project, forcing NuScale to cancel it, causing the company's stock price to plunge and the laying off of a third of its workforce.

Although the tale of NuScale and UAMPS may present a cautionary regarding what seems a promising form of emissions-free power generation, companies are still pursuing SMR goals. The most recent notable entrant into the U.S. SMR ring is Holtec International (Jupiter, Florida), which is heading up the restart of the Palisades nuclear power plant in Michigan. Holtec plans to restart the 812-megawatt (MW) single reactor at the plant in October this year. It will be the first time in history a closed U.S. nuclear plant has been restarted. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

But Holtec doesn't want to stop there at the Palisades plant. This week, the company signed a deal with Hyundai Engineering & Construction (Seoul, South Korea) to deploy 10 gigawatts of SMRs across the U.S., starting with two at the Palisades plant by 2030. Holtec plans to install two 300-MW SMRs at the plant, adding substantially to its generation capacity. The project could be the start of a wave of nuclear restarts at smaller, closed facilities supported by SMRs. Subscribers can learn more by viewing the project report.

U.S. lawmakers also are trying to get SMRs into other states, and recent or proposed legislation from Utah, Arizona and Maine is attempting to ease their deployment in these states. In December 2024, Utah Governor Spencer Cox announced "Operation Gigawatt," a plan to double Utah's energy production within the decade by "enhancing Utah's policies to enable clean, reliable energy like nuclear." Cox proposed putting more than $20 million toward bringing nuclear power to Utah, spending that must be approved by the legislature.

Utah also joined Texas and nuclear startup firm Last Energy Incorporated (Washington, D.C.), which manufactures 20-MW microreactors, in a lawsuit against the NRC, contending that the agency's rules for small nuclear reactors "hinder the development of safe and reliable nuclear power," putting residents' "health and prosperity" at risk.

In Maine, a bill sponsored by Republican State Representative Reagan Paul calls on Maine's Public Utilities Commission to annually gather informational bids on projects that would bring an SMR to the state. Under the legislation, the modular reactors would need to be licensed and have a generating capacity of no more than 350 MW. Paul also proposed a bill to consider electricity from nuclear reactors a renewable form of energy in Maine.

In Arizona, a measure is being proposed to waive certain state regulations for large energy consumers such as data centers to build SMRs. The law aims specifically at a certificate of environmental compatibility. Developers also would be exempt from local zoning restrictions if the facility is in a county with a population of less than 500,000 residents. All but two Arizona counties have less than 500,000 people. The bill passed through the House Natural Resources Committee last week and is on its way for debate in the full House.

Nuclear power is seeing a revival in the U.S., with interest being shown from both sides of the political aisle. SMRs are an important piece of this resurging technology, representing lower costs and construction times, and it appears that their deployment in the U.S. is gradually coming closer to being reality.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).